Amoroso–Robinson relation

The Amoroso–Robinson relation, named after economists Luigi Amoroso and Joan Robinson,Template:Sfn describes the relation between price, marginal revenue, and price elasticity of demand.

$\frac{\partial R}{\partial x}=p(1+\frac{1}{{ϵ}_{x,p}})$,

where

• $\frac{\partial R}{\partial x}$ is the marginal revenue,
• $x$ is the particular good,
• $p$ is the good's price,
• ${ϵ}_{x,p}<0$ is the price elasticity of demand.

Extension and generalization

In 1967, Ernst Lykke Jensen published two extensions, one deterministic, the other probabilistic, of Amoroso–Robinson's formula.Template:Sfn

See also

• Lerner index
• Ramsey problem

References

Bibliography

• Template:Cite journal
• Template:Cite journal

Further reading

• Template:Cite book

Template:Microeconomics-stub